How do you keep track of your profit & loss?
It doesn't matter what you sell, online courses, or something else. How do you keep track of your profit and loss.
Here is an example
- Ad spend: $1,000
- Revenue: $1,200 (48 sales × $25)
- Cost of goods sold: $480 (40% COGS for handmade products)
- Gross profit: $720 ($1,200 – $480)
- Net loss: -$280 ($720 gross profit – $1,000 ad spend)
Do you use some type of software that will keep track of your profit, loss, writing off loss on taxes, paying taxes on any gains and so forth.
Thank you
Oh, I would suggest Excel.
Artur Abakarov I dont know anything about excel but my wife has mad skills in excel related stuff.
David Scurlock In short - Excel is not complicated, even if you have never used it before. You can treat it like a simple table, almost like a sheet in a notebook.
To start, you only need four columns: date, what you spent money on, a short description, and the amount. You just write down your expenses - no formulas or setup required.
Excel can add numbers for you. Just click the “Sum” button and the total is ready. With a couple of clicks, you can also see expenses for a specific month or quickly understand where most of your money goes.
You don’t need to learn Excel deeply. It is enough to use it as a first step to understand your spending. The hardest part is not Excel - it’s starting.
Ditto. Any spreadsheet app. Most have templates to create an instant starting point from which to customize. AI can modify & expand them, or create something from scratch if you prefer.
Moneybird.
I use Quickbooks and a bookkeeper from an accounting firm keeps my books updated. I don't love Quickbooks, but it gets the job done.
I have created a formulated Google Sheets file. Formulas are to create an overview/dashboard of how my businesses overall.